Supported by Microsoft, Chestnut Carbon company has raised $160 million in investment to transform degraded agricultural lands. The company aims to produce high-quality, nature-based solutions that eliminate issues affecting carbon markets. Presently, the company holds over 35,000 acres of marginal and degraded farmlands in the United States. The initiative hopes to increase its carbon credit capacity to 100 million metric tons by 2030.

Microsoft-backed Chestnut Carbon has raised $160 million to plant, restore, and manage trees on degraded farmlands. The goal is to provide high-quality, nature-based credits that address issues impacting carbon markets.

MASSIVE SUPPORT FROM MICROSOFT Microsoft has provided credit for 7 million tons of carbon removal to Chestnut. A 25-year deal will assist in rehabilitating 60,000 acres of land in Arkansas, Louisiana, and Texas. Carbon credits have become a popular commodity among technology companies seeking to offset emissions caused by data centers serving cloud and artificial intelligence clients. The new investment round saw participation from Canada Pension Plan Investment Board, Cloverlay, and DBL Partners, along with unnamed university endowments, family offices, foundations, funds, and other institutional investors.

OWNING 35,000 ACRES OF FARMLAND The $160 million for Chestnut Carbon is actually quite modest. The initiative aims to increase its carbon credit capacity to 100 million metric tons by 2030, requiring the reforestation of hundreds of thousands of acres.

WORLD NEEDS MORE FORESTS If Chestnut can establish itself in the carbon credit market, afforestation and reforestation offer significant potential to mitigate the effects of climate change pollution. A 2019 study found that the world could support an additional 2.2 billion acres of forest today. These forests, when mature, will sequester 205 billion metric tons of carbon, approximately a quarter of the current atmospheric carbon.